Southwest increases dividend and revises aircraft orders

Southwest also said it may save $500 million through 2018 by slowing fleet growth and delaying some aircraft orders.

— Dennis Schaal

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Southwest Airlines Co. on Wednesday announced a boost in its dividend and its share repurchase program and said it is changing some plane orders and deliveries.

The discounter said its board boosted the quarterly dividend to 4 cents a share from 1 cent a share, to begin with the payment on June 26 to shareholders of record on June 5.

The company said its share buyback authorization was increased to $1.5 billion from $1 billion.

Southwest also said it plans to buy 10 pre-owned 737-700s airplanes to be delivered in 2014 and 2015, and it made changes to some existing aircraft orders. The carrier said it would be the first customer to take the 7 series of Boeing’s upcoming 737 MAX plane in 2019. Southwest has an all-Boeing fleet.